Qatar’s Islamic finance assets hit $187.6 billion in 2024
Sector records steady growth with surge in sukuk issuance and strong banking performance
DOHA, Qatar (MNTV) — Qatar’s Islamic finance industry expanded to Qatari riyals 683 billion ($187.63 billion) in 2024, marking a 4.1% year-on-year growth driven by resilient performance in Islamic banking, a sharp rise in sukuk issuance, and steady gains in takaful and investment sectors.
According to the latest Qatar Islamic Finance Report by Bait Al Mashura Finance Consultations, Islamic banks dominated the sector, holding 87.4% of total Islamic finance assets.
Sukuk made up 11.2%, while takaful companies and Shariah-compliant investment entities shared the remaining fraction.
Dr. Khalid Ibrahim al-Sulaiti, vice-chairman of Bait Al Mashura, said the sector experienced notable structural and technological shifts over the past year, reinforcing the need for rigorous data analysis to better understand ongoing transformations and forecast future trends.
Islamic banks’ total assets grew by 3.9% to $161 billion, while their revenue climbed 12.6% to $8 billion and net profit increased by 6% to $2.3 billion.
Deposits surged 8.2% to $93 billion, largely fueled by private sector contributions, which made up 57% of the total.
Financing grew 4.9% to$110 billion, mainly channeled into real estate, government, and personal lending.
The report noted that Qatar’s financial system continues to be underpinned by solid fundamentals, including strong capital adequacy, sufficient liquidity, and high levels of provisioning.
In the takaful segment, total assets rose 7.1% to $1.4 billion, with policyholders’ assets reaching $1 billion.
Insurance contributions increased significantly by 18.6%, exceeding $521 million. While some insurers reported surpluses, others ended the year in deficit.
Islamic finance companies recorded marginal asset growth of 0.8% to $695 million, with financing expanding 5.7% to $520 million.
Revenues rose 14.7% to $80 million, with 84% derived from financing and investment activity. These companies posted a combined profit of $4.8 million, though some incurred losses.
The sukuk market saw dramatic growth, with issuances jumping 161%. Islamic banks experienced a 300% rise, while the Qatar Central Bank issued $5 billion, reflecting an annual increase of 118.5%.
On the Qatar Stock Exchange, the Al Rayan Islamic Index ended 2024 with a 2.23% gain, although listed Islamic finance companies displayed mixed performance, with share price changes ranging from a 2.3% rise to a 19.6% decline.
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